A small business that puts aside a specific amount of money into a special fund each month to cover the cost of replacing its highly specialized manufacturing equipment is using a risk ________ strategy.

Question

Quizplus · Accepted Answer

The strategy being used is anticipation because the small business is preparing for the potential risk of needing to replace its specialized manufacturing equipment by setting aside money in advance. This approach is focused on preparing for potential risks rather than trying to avoid them, reduce them, or transfer them to another party.

A Small Business That Puts Aside a Specific Amount of Money